5% isn’t a huge increase, but the company is already posting 40% profit margins. Why do they need to hike drug prices? Is a 40% profit margin not enough, do they need to get up to 45% profit margins?
Ford motor company, by contrast makes 5% profit margins. Chrysler makes a 2% profit margin. Samsung makes a 7% profit margin.
There are very very easy solutions to this problem of insane drug prices. But neither political party has any interest in enacting them.
Fuck, I would assume blue states like California could possibly enact them, but they still won’t. California has more people and economic clout than Canada or Australia. So if they passed some reforms it would help. But they won’t do it either (but I don’t know how much of that is because the federal gov. won’t let them).
The solutions are easy.
Allow importation from foreign nations (nobody would pay $750 a pill for daraprim if it cost $0.10 a pill from Brazil).
Make it easier for generic manufacturers to enter the domestic marketplace (nobody would pay $750 a pill for daraprim if a domestic manufacturer made it for $0.50 a pill).
Change patent and anti-trust laws.
Allow bulk negotiation of prices.
But none of it will happen.